How to Invest in Cryptocurrencies in 3 Steps

How to Invest in Cryptocurrencies in 3 Steps

How to Invest in Cryptocurrencies

Investing in cryptocurrencies is one of the most popular and interesting ways to grow your capital these days. With media calling Bitcoin the new gold, you can rest assured that some of the cryptocurrencies can hold capital much better than other investments. So, when people ask how to invest in cryptocurrencies, you need to ask yourself a few fundamental questions.

1: Which Cryptocurrency should I invest in?

Before going out and buying Bitcoin or Litecoin or Ethereum, you need to choose which cryptocurrency suits you best. You need to be sure which and how to invest in cryptocurrencies specifically. Fortunately, there are many ways you can do that. You can read our article on top 5 cryptocurrencies to invest in this summer. You also need to do your research and figure out whether the currency has the potential to be used by the general public. Generally, think about a currency which has a growing community behind it or a great idea. This will ensure that there are more people investing in the currency.

Thus, you can be sure that the value won’t drop to 0. With the advent of the internet, this becomes very easy so you can breeze through many different cryptocurrencies and then choose which one you prefer. This is the first step in how to invest in cryptocurrencies.

2: What Exchange do I use?

Thinking about which exchange to use is the second step, you can read our article on some of the best exchanges in 2017. Generally, we recommend buying your cryptocurrency from an exchange that a lot of people use. This makes sure that you’re not scammed. Be wary, a lot of the people offering to “sell bitcoin” at very low prices are clearly scams. To avoid any such issues, we suggest using CEX.IO. It’s one of the most trusted exchanges with low fees so that you can be sure that there’s good value for money when you invest in cryptocurrencies. The platform is very well designed and modern, it’s easy to use most of all.

On the front page, CEX.IO has “Bitcoin Exchange You Can Trust” and I think that it sums up CEX.IO perfectly. Since there are many scam websites on the internet, I think it’s best to trust a company that has been in the bitcoin industry a long while and CEX.IO is great for every need.

3: What wallet should I use?

A cryptocurrency wallet is a software that helps you store, secure, receive and send over the network. It’s the most basic thing you need in order to purchase a cryptocurrency on an exchange. Whilst some platforms offer online wallets, we recommend people to use a hardware wallet. Simply because it’s much safer. It’s called a Bitcoin hardware wallet because the device is like a small mobile phone or USB key. It’s one of the most secure ways to store your bitcoins since the software isn’t connected to the internet. You can read our article on the Best Wallets in 2017. Generally, we recommend the Ledger Nano S for beginners. Ledger is one of the pioneers of the hardware Bitcoin wallet market.

It was founded in 2015 by founders with extensive experience in security and cryptocurrency trading. Currently, it’s one of the best companies providing a hardware wallet.

Invest in the cryptocurrency you choose!

Now that you have all the tools for how to invest in cryptocurrencies, you can go and visit CEX.IO. Hopefully, this guide has been helpful in explaining how to invest in cryptocurrencies.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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